Regional Economic Impacts of Cross-Border Infrastructure: A General Equilibrium Application to Thailand and Lao PDR

Publication | October 2009

This paper analyzes the economic impacts of the Second Mekong International Bridge linking Mukdahan Province in Thailand with Savannakhet Province in the Lao People's Democratic Republic using a general equilibrium model.

The evidence on the economic benefits of cross-border projects, and how they are distributed across countries and over time, is limited. This paper builds a general equilibrium model to analyze the economic impacts of the Second Mekong International Bridge linking Mukdahan Province in Thailand with Savannakhet Province in the Lao PDR. The authors find that the reductions in transport costs increase trade volumes and incomes in both regions, and that these benefits increase significantly over time. There is no evidence to support the common presumption that the benefits from cross-border infrastructure projects occur only, or overwhelmingly, in the richer region.

Additional Details

Authors
Type
Series
Subjects
  • Poverty
  • Regional cooperation and integration
Countries
  • Lao People's Democratic Republic
  • Thailand

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